For the week of June 7, 2021
Recap of last week: Rates basically unchanged
Average mortgage rates among lenders were basically unchanged during last week's holiday shortened week. Friday had the highest potential to see rates move, with the release of monthly jobs data that showed the economy and labor market continue to recover. However, rates were actually unaffected as Friday's data came in close to what was expected.
Mortgage Rate Forecast: Rates likely to remain low, but could get worse
Average mortgage rates this week will remain low, but Thursday's inflation data could see rates end the week slightly worse if investors are concerned that inflation continues to rise. Markets are also looking for signs that the Fed may begin talking about reducing asset purchases at next week's Fed meeting.
What's affecting rates this week:
- Fed stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping keep mortgage rates low. However, talk about when the Fed may begin to taper back purchases could pressure rates higher.
- Economic data: This week the main piece of data that could affect rates and pricing is Thursday's consumer inflation data. Last month the data came in stronger than expected, pressuring rates slightly higher on the market reaction.
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